Canada's labels slam proposed digital 'tax'

TORONTO (Billboard) - A revolutionary plan that would
effectively legitimize file-sharing here has been slammed as "a
pipe dream" by Canadian labels.

The Songwriters Assn. of Canada proposes to allow domestic
consumers access to all recorded music available online in
return for adding a $5 Canadian ($4.96) monthly fee to every
wireless and Internet account in the country.

The SAC claims that the proposal, which has been presented
to labels' bodies the Canadian Record Industry Assn. (CRIA) and
Canadian Independent Record Production Assn. as well as
publishers' groups, would raise approximately $1 billion
Canadian ($993 million) annually. Although the SAC does not
detail how revenue would be collected and distributed, it says
it would go to artists, labels and publishers.

The idea doesn't strike a chord with everyone. The SAC
proposal "would signal the death of paid music services in
Canada," said Alistair Mitchell, CEO of Canadian music service
Puretracks. "It would be saying we're just giving up on
developing new models. The concept is so flawed, I don't know
where to start."

"This proposal is incredibly well thought out and well
constructed," acting SAC president Eddie Schwartz said.
Producer/songwriter Schwartz, whose songs have been performed
by Joe Cocker, Pat Benatar and Donna Summer, says the scheme
would "allow people to gain access to the entire repertoire of
Western music" for only $60 Canadian per year.

That, he added, "amounts to $0.16 ($0.159) per day. (Which)
seems like a pretty good deal." Schwartz said it's unlikely
that users with both a wireless phone and an Internet account
would have to pay twice for access.

MANY HURDLES TO CLEAR

The Canadian Wireless Telecommunications Assn. estimates
that Canada had 18.5 million wireless phone users and 7 million
residential Internet users at the end of 2006. In 2006,
according to the International Federation of the Phonographic
Industry, the trade value of recorded music fell 9.1 percent to
$598.7 million Canadian ($529.8 million); CDs accounted for 85
percent of that total.
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